Flagstar to Appeal Court Ruling on Assured
TROY, Mich., Feb. 5, 2013
TROY, Mich., Feb. 5, 2013 /PRNewswire/ --Flagstar Bancorp, Inc. (NYSE: FBC)
("Flagstar"), the holding company for Flagstar Bank, FSB (the "Bank"),
reported that on February 5, 2013, the United States District Court for the
Southern District of New York (the "Court") issued a decision in the
previously disclosed lawsuit filed by Assured Guaranty Municipal Corp.,
formerly known as Financial Security Assurance Inc. ("Assured").
The Court granted judgment in favor of Assured on its claims for breach of
contract against the Bank in the amount of $90.1 million plus contractual
interest and attorneys' fees and costs to be determined. Flagstar strongly
disagrees with the Court's ruling and intends to vigorously contest the
outcome on appeal.
Flagstar is a full-service financial institution offering a range of products
and services to consumers, businesses, and homeowners. With $14.1 billion in
total assets at December 31, 2012, Flagstar is the largest publicly held
savings bank headquartered in Michigan. Flagstar originates loans nationwide
and is one of the leading originators of residential first mortgage loans.
For more information, please visit flagstar.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements, by their nature, involve estimates, projections,
goals, forecasts, assumptions, risks and uncertainties that are difficult to
predict and could cause actual results or outcomes to differ materially from
those expressed in a forward-looking statement. Forward-looking statements
contained in this press release and any information related to expectations
about future events or results are based upon information available to the
Company as of the date hereof. Forward-looking statements can be identified
by such words as "anticipates," "intends," "plans," "seeks," "believes,"
"expects", "estimates," and similar references to future periods. Examples of
forward-looking statements include, but are not limited to, statements made
regarding the Company's current expectations, plans or forecasts of its core
business drivers, credit related costs, asset quality, capital adequacy and
liquidity, the implementation of the Company's business plan and growth
strategies, the suspension of dividend payments on preferred stock, the
deferral of interest payment on trust preferred securities, the result of
improvements to the Company's servicing processes, and other similar matters.
Although we believe that these forward-looking statements are based on
reasonable estimates and assumptions, they are not guarantees of future
performance and are subject to known and unknown risks, uncertainties,
contingencies, and other factors. Accordingly, we cannot give you any
assurance that our expectations will in fact occur or that actual results will
not differ materially from those expressed or implied by such forward-looking
statements. We caution you not to place undue reliance on any forward-looking
statement and to consider all of the following uncertainties and risks, as
well as those more fully discussed in the Company's filings with the
Securities and Exchange Commission ("SEC"), including, but not limited to, our
Forms 10-K and 10-Q: volatile interest rates that impact, among other things,
the mortgage banking business, our ability to originate loans and sell assets
at a profit, prepayment speeds and our cost of funds; changes in regulatory
capital requirements or an inability to achieve or maintain desired capital
ratios; actions of mortgage loan purchasers, guarantors and insurers regarding
repurchases and indemnity demands and uncertainty related to foreclosure
procedures; uncertainty regarding pending and threatened litigation; our
ability to control credit related costs and forecast the adequacy of reserves;
the imposition of regulatory enforcement actions against us; our compliance
with the Consent Order with the Office of the Comptroller of the Currency,
which was disclosed on October 23, 2012; and the commercial loan sale may not
have the projected impact or be consummated in a timely manner. Except to the
extent required under the federal securities laws and the rules and
regulations promulgated by the SEC, the Company undertakes no obligation to
update any such statement to reflect events or circumstances after the date on
which it is made.
SOURCE Flagstar Bancorp, Inc.
Contact: Bradley T. Howes, Investor Relations Officer, +1-248-312-2000
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